Special Rate Variation Richmond Valley Council Prepared by : Micromex Research

1. Special Rate Variation Richmond Valley Council Prepared by: Micromex Research Date: December 2013

2. Background

3. Methodology & Sample • Interviewing • A random telephone survey of 400 residents was conducted from 2nd to 5th December 2013. • Interviewing was conducted in accordance with IQCA (Interviewer Quality Control Australia) Standards and the Market Research Society Code of Professional Conduct. Where applicable, the issues in each question were systematically rearranged for each respondent. • Sampling Size Implication • A random community sample size of 400 provides a maximum sampling error of plus or minus 4.9% at 95% confidence. • This means that if the survey was replicated with a new universe of n=400 Richmond Valley residents, 19 times out of 20 we would expect to see the same results, i.e. +/- 4.9%. • Therefore, the research findings documented in this report should be interpreted by Richmond Valley Council and IPART as not just the opinions of 400 residents, but as an accurate and robust measure of the entire Richmond Valley Council community’s attitudes. The phone survey will provide Richmond Valley Council with a robust and statistically valid measure of community response to the proposed SRV program

4. Questionnaire Flow • The questionnaire, of approximately 10 minutes in duration, was designed to establish current attitudes and explore community response to the proposed resource strategies Questionnaire Structure Q5a. Prior to this call were you aware that Council was potentially seeking to apply for a special rate variation Q5b. How were you informed of the special rate variation Q6. How important do you believe it is that Council be allowed to introduce this special rate variation? Q7. Age group Q8. Home ownership Q9. Do you live in a: Q10. Employment status Q11. Gender QA. Confirmation that respondent does not work for Council Q1. Suburb of residence Q2. Number of years lived in the area Q3. How important do you believe it is for Council to implement programs that will provide better infrastructure and service? READ CONCEPT Q4. How supportive are you of Council proceeding with this application? Q4b. Why do you say that? Q5. How much per week would you be prepared to pay to realise the benefits of this proposal over the next 4 years? The questionnaire was developed in conjunction with Richmond Valley Council staff

5. Sample Profile

6. Sample Profile Base: n = 400 The sample has been weighted to reflect ABS Census data

7. Detailed Responses

8. 94% Of Residents Believe It Is At Least ‘Important’ For Council To Implement Programs That Will Provide Better Infrastructure And Services Scale: 1=not at all important, 5=very important Base: n = 400 Q. How important do you believe it is for Council to implement programs that will provide better infrastructure and service? The community wants Council to focus on providing for the LGA

9. Support of SRV Concept

10. 74% Of Residents Were Aware Of The SRV Application, Most Informed By Council’s Mail Out (84%) Q. How were you informed of the special rate variation? Q. Prior to this call were you aware that Council was potentially seeking to apply for a special rate variation? Base: n = 297 Base: n = 400 There was a high level of awareness that Council was seeking to make an application for an SRV

11. Concept Statement Read Concept statement: Rates are Council’s main source of income for delivering services, and are capped by the State Government. This is usually set to increase at around 3% per annum. When developing the Community Strategic Plan, Richmond Valley Council recognised that it would not be able to maintain existing service levels in the community without an increase in the Ordinary rate. This is as a result of having to spend more maintaining new assets at a higher standard to meet the needs of our growing community. As such, in Council’s 10 year financial plan it factored in a rate variation that was in excess of the standard 3% rate peg. Council is proposing to apply to IPART (Independent Pricing and Regulatory Tribunal) for a permanent General rate increase of 12.5% next year and 5.5% per year for the next 4 years after that. This includes the allowed ‘rate peg’ and would account for an annual increase of $1.73 per week or $90 a year next year and 85 cents per week or $44.20 extra per year for each of the next four years for the average residential household. Note this increase is not applicable to water, sewer or garbage rates. Projects this increase will fund include the following: Addressing the backlog in road, park, drainage, public toilet and playground renewals $6,260,000 Improving the Casino, Coraki and Woodburn riverfronts $1,875,000 Implementing job generation initiatives, developing industrial land and WiFi for towns $1,260,000 Major car parking improvements in Casino and Evans Head CBD $1,080,000 Civic pride, cultural and art facilities Casino Riverbank Amphitheatre $870,000 Modern IT systems, better communication to residents $440,000 New skate park in Woodburn and extensions in Casino, and Evans Head $430,000 Better maintenance on drainage, playground equipment and toilet cleaning $400,000 Providing Council traineeships for school leavers $300,000 The purpose of this increase is to ensure the future financial sustainability of the local government area and to ensure that Richmond Valley remains a great place to live. Residents were given the opportunity to have the statement read multiple times to ensure they felt comfortable that they understood the SRV concept

12. 66% Of Residents Are At Least ‘Somewhat Supportive’ Of Council Proceeding With The Application Scale: 1=not at all supportive, 5=very supportive Base: n = 400 Q. How supportive are you of Council’s proceeding with this application? Q. Why do you say that? The community wants Council to focus on providing for the LGA

13. When Pressed, Many Residents Opted For The Minimum Amount Q. How much a week would you be prepared to pay to realise the benefits of this proposal over the next 4 years? Base: n = 400 45% opted to pay less than a dollar per week and 48% nominated paying $1+ per week

14. Nearly ¾ Of Residents Thought It Was At Least ‘Somewhat Important’ For Council To Be Allowed To Introduce The SRV Q. Based on what you have been told, how important do you believe it is that Council be allowed to introduce this special rate variation? Scale: 1=not at all important, 5=very important Base: n = 400 Residents generally feel it is important for Council be financial secure and that Richmond Valley remains a great place to live

15. Conclusion

16. Conclusion • Residents are generally supportive of Council’s application • 66% of residents are at least ‘somewhat supportive’ of Council proceeding with the application • A significant number of residents believe that the introduction of a Special Rate Variation is important • 73% Of residents thought it was at least ‘somewhat important’ for Council to be allowed to introduce the SRV

17. Telephone: (02) 4352 2388 Fax: (02) 4352 2117 Web: www.micromex.com.au Email: warren@micromex.com.au